EIC Accelerator implementation back on track but delays expose fast-moving deep tech firms to timing risk
- ›The EIC Accelerator continues to attract strong demand with 986 full applications in the June 2022 cut-off and thousands of prior submissions.
- ›Grant contracting for most companies selected in 2021 has been completed or is well advanced but some signatures and investments were delayed by the EIC Fund restructuring.
- ›The EIC Fund announced its first direct equity investment in SiPearl: a €2.5 million grant plus a €15 million equity ticket that aims to catalyse more than €100 million in a Series A round.
- ›Due diligence by the European Investment Bank is underway and the appointment of an external Fund Manager for the EIC Fund is expected to accelerate remaining investments.
- ›The EIC Board set operational KPIs including first grant payments within 4 to 5 months of application and investment term sheets agreed within 8 weeks.
Where the EIC Accelerator stands now
The European Innovation Council Accelerator combines non-repayable grants with equity or quasi-equity investments to support deep tech start-ups and SMEs. Since its launch under Horizon Europe in 2021 the instrument has been heavily subscribed. In the current market context where private venture capital for deep tech has cooled, the EIC’s role in early-stage patient capital and in crowding-in co-investors has become more prominent. That said, the Accelerator’s launch coincided with a required restructuring of the EIC Fund under Horizon Europe rules. That process disrupted the timetable for concluding grant and equity agreements for successful applicants selected in 2021 and early 2022.
Scale of demand and recent application volumes
Since April 2021 the EIC has received a very large volume of expressions of interest and applications. Over 7,200 short applications have been submitted to the continuous short application channel. Nearly 4,000 full applications were submitted to regular cut-offs between June 2021 and June 2022. The intake per full application cut-off was reported as follows.
| Cut-off | Full applications submitted | Selected for funding (full-evaluation) |
| June 2021 | 805 | 63 |
| October 2021 | 1,098 | 99 |
| March 2022 | 1,091 | 74 |
| June 2022 | 986 | selection under evaluation in September 2022 |
Implementation state of play by cohort
EISMEA the agency responsible for grant contracting and the EIC Fund actors handling equity have been publishing step-by-step updates. The situation in early August 2022 can be summarised as a majority of grant contracts signed or in final preparation, while the equity investment component remains dependent on completion of restructuring and appointment of an external Fund Manager. Below is the operational breakdown provided by the EIC and its agency.
| Cut-off | Companies selected | Requests: grant-only / grant-first | Requests: blended / equity-only | Grant contracting / pre-financing | Investment status |
| June 2021 | 63 | 29 | 30 blended + 4 equity-only | 29 pre-financings paid for grant-only/grant-first. 29 of the 30 blended projects had their grant component contracts signed. Overall about 58 grant contracts signed. | Due diligence by EIB progressing. Investment agreements expected to be signed from summer into end of year. |
| October 2021 | 99 | 34 | 61 blended + 4 equity-only | Around 28 grant contracts signed for grant-only/grant-first. 10 of 61 blended projects signed grant components with the majority planned to be signed subsequently. | One investment decision announced. Investment agreement signatures for equity components planned from summer until the end of the year. |
| March 2022 | 74 | 36 | 38 blended and equity-only | Kick-off meetings held and negotiations on track. Grants prepared with first signatures expected in October 2022. Typical grant payment timing expected within 5–8 months of application. | Finalisation of most equity investments expected from autumn 2022 until early 2024 depending on the case. |
| June 2022 | 986 full applications submitted | n.a. | Large share requested blended finance | Final stage of evaluation scheduled for mid-September 2022. Successful companies to pitch in front of juries in September with selection decisions expected in October. | Investment component timelines will follow selection and due diligence; appointment of external Fund Manager remains key to speed. |
EIC Fund restructuring, EIB due diligence and first equity closing
Under Horizon Europe the EIC Fund needed a new investment governance and an external Fund Manager to operate the equity side at scale. That restructuring produced a temporary bottleneck. To progress investments while the new manager was being appointed the European Investment Bank was tasked to perform due diligence and provide investment advisory support. The EIB’s work was described as progressing quickly for 2021-selected companies. The intention is that once the external independent Fund Manager takes over investments will be able to close more swiftly and the overall implementation timeline will be shortened for future cohorts.
A material milestone in this sequence occurred in mid-June 2022 when the EIC Fund announced its first major direct equity investment in SiPearl. That deal paired a €2.5 million grant under the EIC Accelerator with a €15 million EIC Fund equity investment as part of a Series A that the company says will unlock over €100 million of follow-on capital from strategic and other investors. SiPearl develops a high-performance, low-power European processor for exascale supercomputing and is a spin-out from the European Processor Initiative.
What the EIC Board changed and operational targets
The EIC Board adopted revised strategic goals and Key Performance Indicators in mid-June 2022 that expanded ambitions and added operational excellence metrics. The operational KPIs set clear targets to improve speed and predictability: first grant payments within 4 to 5 months of application, and for the EIC Fund to agree investment term sheets within eight weeks where feasible. The Board also reaffirmed the EIC’s mandate to actively manage deep-tech portfolios in priority domains such as biotech and to provide Business Acceleration Services to backed companies.
Analysis: why the delays matter and where risks remain
The EIC Accelerator is a significant public instrument for European deep tech. It has become more important as some private investors retreated from new early-stage deep tech deals. That said, timing matters for start-ups with limited cash runways. Delays in signing grant contracts or in closing equity can increase the financing stress on teams and can affect valuations and the ability to attract co-investors. The EIC has mitigated some problems by paying pre-financing quickly after signature and by accelerating grant contracting. However the equity side remains dependent on the appointment and operational readiness of an independent Fund Manager and on the timely completion of due diligence processes.
There is a second risk that political and governance redesigns can produce policy and operational uncertainty for the very firms that need fast, predictable support. The EIC has publicly committed to shrink implementation timelines and to meet operational KPIs. Achieving those targets will require sustained coordination between EISMEA on the grant side, the EIB on due diligence, and the incoming Fund Manager on investments.
Concrete short term expectations
| Milestone | Status and expected timing |
| Remaining grant contracts for 2021 cohorts | EISMEA reported the majority signed. Remaining signings expected by October 2022. |
| First grant signatures for March 2022 cohort | Grants in preparation with first signatures due in October 2022. Typical grant payments occur within 10 days of signature. |
| Investment agreements for 2021 cohort | Due diligence by EIB progressing. Investment agreement signatures expected to start in summer and continue into autumn and beyond. |
| Selection decisions for June 2022 cut-off | Evaluation final stage mid-September 2022. Jury pitching in September and selection decisions expected in October 2022. |
| Appointment of external EIC Fund Manager | Ongoing at the time of the reports. Its appointment is the critical path to speed up remaining investments. |
What to watch next
Key markers to follow are the formal appointment of the external Fund Manager and its initial investment decisions, the pace of signing remaining grant contracts for 2021 and early 2022 cohorts, and whether the EIC meets its new operational KPIs. Market reaction to the SiPearl transaction is also a useful indicator of the EIC Fund’s ability to catalyse larger public and private rounds. For applicants the practical items to track are upcoming cut-off deadlines and the EIC’s Business Acceleration Services that can help bridge commercial needs while funding arrangements finalise.
Definitions and short explanations
Bottom line
The EIC Accelerator remains a central EU instrument to support deep tech scale-up and to mobilise co-investment. By early August 2022 grant contracting for the bulk of 2021 cohorts had been advanced and the first equity investment under the restructured EIC Fund was announced. Those developments suggest the programme is re-entering a more normal operating rhythm. Nevertheless the transitional delays underscore the operational risks that follow organisational restructuring and the sensitivity of high-tech ventures to timing. The EIC’s new operational KPIs are a welcome step but they will matter only if met consistently. Market, investors and founders will be watching whether the incoming Fund Manager and the EIB can convert approvals and term sheets into timely signed investments and whether EISMEA can keep grant contracting on schedule.